Public liability insurance is the insurance that covers the risk of amount you may need to pay a customer if suffers any injury at your business premises. It also covers the risk if your business causes any damage to their property. Moreover, you will also get reimbursement for money paid as legal charges for defending such claims. This is particularly important because even if court does not award any damages, still you need to pay large amount of money as legal fees.

Why do I Need a Public Liability Insurance?

Necessity of public liability insurance can be understood by the fact that no one can run a business that has no risk at all. You cannot afford to ignore the risk factors associated with any business. Neither can you remove risk from the business completely. Furthermore, it is your legal obligation to compensate the money for any injury to your customer or loss of his property caused due to your business. Do not take it lightly in any case, because sometimes it may go as high as more than a million dollars. What is in your hands is to buy a public insurance policy so you may not have to pack your bags in the event of worst disaster. No matter how big amount a customer claims, insurance company will always be there to your rescue and reimburse full amount of claim along with legal fees. With the bad weather friend like public liability insurance standing behind, you will be able to concentrate on your core activities confidently rather than praying that worst should not happen.

Some Typical Examples:

Here are some examples of when you would need public liability insurance. You own a plumbing company. One of your client calls you repair something in his kitchen. While trying to find the fault you suddenly burst the pipe. Water comes out with so much pressure that it completely damages the computer system and carpet of the client. You will have to compensate for the losses. Now let us take another example. You operate a marketing business from office. Your customer twists his knees while visiting your office because of poor quality carpet system. You will need to pay claim for the injury. Similarly, if you deal in building construction and a passer by is injured because one of your employees dropped something. You need to pay for the injury. The possibilities are endless. Instead of wasting time and energy on exploring possibilities, it will be better to buy a public liability insurance and rest assured.